I can join the list of people confirming this bug. Under Hardy 8.04 LTS
on my Dell Inspiron 530 desktop PC, my card works fine, being detected
by the wireless manager as:

Intel Corporation 82562V-2 10/100 Network Connection (rev 02)
RaLink RT2561/RT61 802.11g PCI

and I get good connectivity. It continued to work fine under 8.10 and
9.04, but when I tried to update to Karmic 9.10, the update hiccuped
halfway through. After that, I found that my network connectivity stank.
I could connect reliably to my wireless router: Typing the stereotypical
192.168.0.1 into my browser address box immediately brought up the
control panel for the wireless router. However, actual Internet sites
were, at best, very slow to load and, at worst, completely inaccessible.
My mail was also completely inaccessible. It was always the same sites I
couldn't reach; those I could, were a bit faster when accessed
repeatedly.

I burned a Karmic 9.10 disk on 20 Nov 2009 and ran it as LiveCD. The
problem was still there, so it wasn't a corruption of my configuration
files on my hard disk due to the hiccup during installation.

I had to reinstall Hardy 8.04 LTS on my system. (Fortunately I had the
wit to thoroughly back up before trying to update to Karmic.) Everything
is working great now, so it's not my hardware.

It looks very much like something went wrong with the RaLink
RT2500-series wireless card drivers between 9.04 and 9.10.

-- 
rt2500usb wireless does not work
https://bugs.launchpad.net/bugs/468072
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